Who leads China’s jewelry innovation race?

China’s luxury jewelry market is set for steady growth over the coming years, even as brands adapt to an evolving consumer landscape and economic challenges. Projected to expand at a compound annual growth rate (CAGR) of 5% from 2024 to over $121.3 billion by 2030, up from $86.4 billion last year, according to Horizon Grand View Research, this growth trajectory signals resilience in the country’s luxury sector. Yet, the path forward demands fresh approaches as consumer expectations evolve. Amid rising economic uncertainty, younger Chinese buyers are looking beyond mere ownership – they value experiences and personalized engagement. Luxury jewelry brands are responding, balancing heritage with digital innovation to meet the evolving demands of an audience that prioritizes authenticity and artisanal quality. As this demographic redefines luxury, brands that adapt will capture a broader, more discerning clientele. At the forefront of this evolution, global giants like LVMH and Richemont, and domestic leaders Chow Tai Fook and Lao Feng Xiang, are shaping the future of luxury jewelry through innovative new materials, as well as new forms of consumer engagement. With global and local brands embracing contemporary aesthetics, the segment’s expansion reflects a shifting mindset among young consumers who see jewelry as an expression of identity and culture, more than a traditional status symbol. From ownership to engagement For affluent millennials and Gen Z, luxury consumption is increasingly about experiences and emotional connections rather than mere ownership. Van Cleef & Arpels’ L’École School of Jewelry Arts (November 1, 2024, to March 30, 2025), in Shanghai, exemplifies this shift by offering workshops and exhibitions that draw younger audiences. The initiative has garnered over 1.3 million views on Xiaohongshu. Experiential engagement enables brands to showcase the artistry and craft behind their products, encouraging consumers to value their jewelry pieces as more than simple transactions. As demand grows for meaningful connections, brands that emphasize storytelling through immersive experiences are likely to cultivate enduring loyalty. Exclusive access to the design and creative process fosters a deeper bond, appealing to an audience that values authenticity as much as quality. Gold alternatives and niche designers Gold holds long-standing cultural and investment significance in China, yet soaring gold prices – surpassing $2,700 per ounce as of November 5 – are prompting some younger, cost-conscious consumers to explore alternatives like platinum, silver, and contemporary materials. For younger buyers, gold is less about stability and legacy than it is a component of personal style. This trend signals an opportunity for brands to diversify their offerings, blending traditional elements with innovative designs to appeal to this demographic shift. Chow Tai Fook and Cartier, for example, have introduced collections that integrate traditional stones with new materials, maintaining a blend of modernity and timeless craftsmanship. By broadening their collections, luxury brands can cater to a wider range of tastes while preserving relevance in a market that values both tradition and evolution. Just as younger consumers are increasingly supporting domestic brands in the fragrance and fashion categories, a similar shift is underway in the luxury jewelry space. China’s next generation is drawn to homegrown designers who create, avant-garde styles that merge Chinese cultural motifs with a global design language. Brands like YVMIN and Cough in Vain are gaining attention for their experimental approaches, often incorporating alternative materials like resin, titanium, and nylon. They appeal to consumers who view jewelry as a form of personal expression, diverging from mainstream tastes and embracing inclusivity and diversity in design. At the forefront of this movement are designers like Wallace Chan and Feng J, who showcase Chinese artistry globally, from the Paris Biennale to exhibitions at Sotheby’s. These designers are elevating luxury jewelry in China and challenging established international brands by offering products that resonate deeply with younger buyers. This shift in consumer loyalty, as observed on platforms like Xiaohongshu, where hashtags dedicated to niche Chinese jewelry brands receive millions of views, underscores a growing appreciation for culturally resonant, locally designed pieces. Growing mid-tier market China’s demi-fine jewelry market sits at a sweet spot between luxury investment pieces and fast fashion, appealing to consumers seeking both style and affordability. Initially, trend-driven designs and accessible price points helped this segment resonate with younger Chinese spenders who desired luxury aesthetics without the high cost. However, persistent economic headwinds and a recent downturn in employment rates are creating challenges, putting this market’s continued momentum to the test. Global projections remain optimistic, with the demi-fine jewelry segment expected to grow at a CAGR of 14.8% from $2.53 billion in 2023 to $7.62 billion by 2031. In China, the segment remains attractive, with brands like APM Monaco and Monica Vinader leading the way. They have successfully localized their approach, offering collections that resonate with young urban buyers while deploying social media collaborations with local influencers to build brand loyalty. As economic conditions tighten, demi-fine brands that focus on quality, cultural relevance, and strategic digital engagement may secure an enduring foothold in the market.

Who leads China’s jewelry innovation race?

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Published November 05, 2024

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Who leads China’s jewelry innovation race?